- Vipshop’s 2Q net revenue forecast fell short of estimates with a net revenue of 26.5 billion yuan to 27.9 billion yuan, instead of the anticipated 29.28 billion yuan.
- The first quarter results showed that Vipshop’s adjusted earnings per American depositary receipts increased from 3.52 yuan to 4.66 yuan. This surpassed the estimate of 4.07 yuan.
- The gross merchandise value also rose, going from 52.4 billion yuan, a yearly increase of 8%, surpassing the estimate of 51.92 billion yuan.
- The operating margins have risen from 7.2% to 10%.
- Adjusted operating margin took a jump from 8.3% to 11.1%.
- Vipshop’s first quarter adjusted operating income saw a 33% yearly increase, reaching 3.06 billion yuan, higher than the estimated 2.5 billion yuan.
- However, the net revenue showed only a minor increase of 0.4%, reaching 27.65 billion yuan from the 27.89 billion yuan estimated.
- For the second quarter of 2024, Vipshop expects total net revenues to decrease by approximately 5% to 0%, from last year.
- “The first quarter saw slow business momentum after a strong start due to softer-than-expected seasonal demands” were the words of Mr. Eric Shen, Chairman and CEO of Vipshop.
- He also mentioned that “Margins remained very healthy attributable to higher-margin categories and disciplined operations.”
- The company received 22 buys, 6 holds, and no sells.
Vipshop Holdings on Smartkarma
On Smartkarma, independent analysts like Wium Malan, CFA, are providing insightful coverage of Vipshop Holdings. In one report, Wium Malan highlights Vipshop’s strong balance sheet and growth prospects, with net cash representing about 40% of its market cap. The company’s initiatives, including share buybacks and dividends, are seen as supportive factors for its share price. With a low PE ratio and expectations of solid earnings growth, Vipshop appears attractive in the current market environment.
Another analyst, Ying Pan, emphasizes Vipshop’s resilience in the face of changing consumer trends. With a focus on discount offerings and a strategy to cater to cost-conscious consumers, Vipshop is well-positioned to benefit from ongoing demand for discounted apparel in China. Pan maintains a bullish outlook on Vipshop, with a BUY rating and raised price targets, reflecting confidence in the company’s ability to navigate market challenges and capitalize on opportunities in the retail sector.
A look at Vipshop Holdings Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 4.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts foresee a positive long-term outlook for Vipshop Holdings Ltd., a company that specializes in retailing branded products online at discounted prices. Based on the Smartkarma Smart Scores, Vipshop Holdings received solid scores across the board. The company scored well in terms of value, dividend, growth, and resilience, indicating a strong overall performance in these key factors. Particularly noteworthy is the top score of 5 for resilience, suggesting that the company has a robust ability to withstand challenges and maintain steady performance over time.
Vipshop Holdings also scored well in areas like value, dividend, and growth, all receiving a score of 4. These scores hint at the company’s attractive valuation, dividend payouts, and growth potential. While momentum scored slightly lower at 3, which could indicate some room for improvement in this area, the overall outlook for Vipshop Holdings appears favorable based on the Smartkarma Smart Scores assessment.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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